The Patient Protection and Affordable Care Act (also known as ObamaCare)
by cjleclaire
 Stefans Law Group
Jan 29, 2015 | 16123 views | 1 1 comments | 367 367 recommendations | email to a friend | print | permalink
Author; Donna Stefans

Re:Obamacare

The Health insurance reporting requirements on the 2014 tax return are a bit complicated. If you and your family were covered by an employer health care plan for all 12 months in 2014, there is no need for further clarification. Your return will be processed by simply checking the box to affirm that you had coverage all year.

If you had any months without medical insurance or obtained your insurance through a state or federal health insurance exchange, please read this important information.

Taxpayers not covered for health insurance for a portion of 2014

These taxpayers will need to report each month without coverage for each applicable family member (taxpayer, spouse and dependents) on the tax return. A penalty of up to 1% of adjusted gross income may apply. However, there are many exemptions to the penalty. We will be sure to review them when we prepare your tax return to ensure that you don’t pay a penalty if it can be legally avoided.

Taxpayers covered for health insurance through a state or federal exchange

A premium subsidy credit may have been applied by the exchange. This amount was estimated based upon the income declared on the application. The 2014 tax return will be used to validate the credit entitlement. This may result in an additional tax credit due (increase the refund) or the need to decrease a credit already received (additional tax due). You should be receiving form 1095-A from the exchange, showing the premium credit, and other information. Please be sure to bring that form in to us so we can correctly handle the reporting on your tax return.

Beginning in 2015, nearly all individual taxpayers will receive a new annual information reporting form from employers and/or insurance companies (forms 2095-B or 1095-C). These forms will be needed when completing the 2015 return. We suggest you save them with your other tax documents.

As always, we are here to support you. Feel free to call us with any questions you may have.

We wish you all a Happy, Healthy, Prosperous New Year.

Comments
(1)
Comments-icon Post a Comment
K. S.
|
February 10, 2015
Thank you for a making a difficult conversation understandable. You are a true professional.